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antonie rendon
on Nov 13, 2024

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The ratio of fixed assets to long-term liabilities provides a measure of a firm's ability to pay dividends.

Fixed Assets

Long-term tangible assets, such as buildings, machinery, and equipment, used in the operations of a business and not expected to be consumed or converted into cash within a year.

Long-term Liabilities

Obligations of a company that are due beyond the current fiscal year or operating cycle.

  • Recognize the critical role that financial ratios play in determining a company's liquidity, profitability, and solvency.
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Dreilon SmithNov 15, 2024
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